Online Business Loans for Faster Recovery

Business Growth
July 3, 2023

With the economy steadily climbing back to recovery, businesses who have been able to sustain their operations can breathe easier. Nonetheless, various factors still pose challenges to operations for most businesses. Operational capacity limits still disrupt the normal flow and of course, the biggest challenge of all, financing the following necessities:

  • Operational costs such as employee salaries, utility, rent, supplies, fuel for transportation, etc.
  • On-time payment to your suppliers and other third party costs like delivery services
  • New project orders that when accepted, will help grow your business
  • Need to increase your inventory to make way for larger orders
  • Need to increase your revenues and profit by ensuring your capacity to take on orders during seasonal spikes
  • Need to expand your business by investing in machines, adding warehouses, etc.

Financing is always tricky due to existing payment terms and worse, the disruptions and backlog all establishments are managing in this pandemic. Instead of waiting to get paid to get a move on your operations, why not advance your receivables that will ensure your growth today?

The need for best value online business loans

Surely you’ve heard of online business loans or online business financing as one of the top choices to explore when your business is in a cash flow slump. You may have heard of a few friends who have tried this option and one of the salient feedback points mentioned were: fast, convenient, low risk, but a bit expensive. Of course, you want to trim down on unnecessary spending during this time so that means you’ll want the best value from your online business loan. In fact, if you might have gone back and forth the Bayanihan 2 Act to check all of its provisions relevant to your needs. 

While the new law is yet to be signed here are some of the relevant MSME provisions in this summarized article on the Bayanihan 2 draft. 

SSS Calamity Loan

Take advantage of government loans first, which usually provide you with the best value. The best part is, this particular loan can now be applied for online. This process hastens the usual process and “reduces face-to-face transactions in branches.” One of the most innovative programs the SSS has launched yet, SSS President and Chief Executive Officer Aurora Ignacio estimates around 1.74 million members to sign up for the program. This estimate almost has a 100 percent reliability as a total of 1.03 million member-borrowers were granted calamity loans by the SSS at the start of August. 

If you’ve been a faithful contributor to the Social Security System (SSS), you may want to consider getting a calamity loan to help with your business’ cash flow problems, if you don’t need it for a house repair and the like. The COVID-19 pandemic officially launched a national pandemic, which caused the SSS to open its Calamity Loan Assistance Program (CLAP) for SSS members who are in need of financial help. 

The details you need to know

Loan amount: up to Php 20,000 (depends on your average monthly salary credit or contribution in the last 12 months).

Payment terms: usually up to 24 months with 10% interest; but has been extended to 27 months, inclusive of a three-month moratorium period with a lessen interest of 6% per year.

Loan amortization: Specifically for COVID-19 related loans, these will start on the fourth month from their approved dates. Advance interests will not be charged, but a 1%  from total loan amount will be charged as service fee, which will be deducted from the loan proceeds. 

Penalty fees: if loan payment is not remitted on its due date, a 1% penalty fee per month will be charged.

Requirements to qualify: Remember that you can apply for a COVID-19 calamity loan online you can do it on their portal at My.SSS web portal.

  • Should have at least 36 monthly contributions, six of which should be posted within the last 12 months before the application.
  • Should have a work or home address within the Philippines as reflected in the SSS database.
  • Should NOT have been granted any final benefit such as total permanent disability or retirement.
  • Should have NO outstanding loans under the Loan Restructuring Program or previous CLAPs.

Waived requirement: Documents proving that a member resides in a declared calamity area, as a result of  the COVID-19 pandemic which places the entire country under a calamity.

Application Due Date: (For CLAP only) until September 14, 2020

Disbursement: qualified and approved member-borrowers have options to choose from for redemption.

  • Receive via their Unified Multi-Purpose IDs enrolled as an ATM
  • Union Bank Quick Card
  • Checks sent to their nominated mailing address

What to do if you don’t qualify for an SSS Online Calamity Loan?

There’s always the trusted route of exploring fair online business loans from credible online private lenders who have played a big role in helping the Bangko Sentral ng Pilipinas (BSP) give financial access to MSMEs these past few years, especially during the COVID-19 pandemic.

To learn more about online business loans and its competitive advantages vis-a-vis traditional sources, click here.

Amortising Loan Program

Recently, First Circle launched its new Amortising Loans Program, which gives businesses the best value yet. Depending on the nature of your business and the types of orders or the specific need for financing, and payment terms you have, First Circle will assess if you would qualify for an ALP.

This is by far the most custom-fit product that we can offer that gives borrowers control over their installment payment schedule. You can pay weekly or monthly, which benefits the health of your cash flow in the long run as you get to repay early, even securing an interest rebate should you do. So if you need help specifically with the following, the ALP may just be right for your business:

  • Need to meet upcoming expenses - like payroll, taxes and projects
  • Slow payment from customers
  • Seasonal sales spikes 
  • Growing faster than cash is coming in

Unlike banks and other business financing providers, you only pay for the funds you use, new and repeat partners can access funds as fast as 1 to 3 business days, with flexible repayment date setting, clear pricing and no hidden fees. It’s also good to note that our ALP product is also the only solution in the market that allows for free repayment rescheduling - there is no charge for moving the payment date later, other than the incurred interest charge.

Invoice Financing

Qualifying for our Invoice Financing product would have less requirements. If you’re a Business-to-Business (B2B) company that has current outstanding receivable, click here to get the summary of our Invoice Financing product and link to how to apply. 

The maximum amount you can qualify for depends on the total amount and available credit limit.

Invoice Financing is best for:

  • Need to meet upcoming expenses - like payroll, taxes and projects
  • Slow payment from customers
  • Run your business during seasonal sales spikes 
  • Growing faster than cash is coming in

Purchase Order Financing

These are usually for B2B businesses that need to buy supplies to fill a customer order but are running short on cash at the time of need. The submission of your purchase order and other requirements can help this vital need. 

To learn more about Purchase Order Financing click here.

Purchase Order Financing is best for:

  • Growing faster than cash is coming in 
  • Seasonal sales spikes 
  • Cyclical tight cash flow 

Need an online business loan today? Apply for one with First Circle by clicking here.

Ready to get your own revolving credit line?

Apply 100% online, and get a credit line worth up to ₱20M. Use and re-use your credit limit anytime you need a business loan.

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